Loans with negative rates would be 'a perversion', ECB's Nowotny says

September 1, 2016 5:28 PM

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VIENNA Consumer loans with negative interest rates would be "a perversion", one that has not happened even in negative-rate trailblazer Switzerland, European Central Bank Governing Council member Ewald Nowotny said on Thursday.

"I believe it would be a perversion, an economic one, for loan rates to suddenly be negative. It totally goes against the economic nature of a loan," Nowotny told an economic conference in the Alpine resort of Alpbach.